Japan–U.S. Deal advances on first $36B for U.S. energy

Japan starts $36B in U.S. energy and minerals projects

President Donald Trump announced that Japan has begun investing in major U.S. energy and industrial projects, launching a first $36 billion tranche under a broader $550 billion bilateral commitment, as reported by Bloomberg (https://www.bloomberg.com/news/articles/2026-02-17/trump-announces-first-japan-investments-under-trade-deal). The initial funding focuses on strategic energy infrastructure and critical minerals linked to economic and national security priorities.

While detailed project lists were not fully disclosed at the time of the announcement, the move signals the start of a multi-year pipeline aligned with oil and gas development, power systems, and minerals supply chains. The arrangement is presented as part of a cross-border industrial strategy rather than a single commercial transaction.

Where funds go: Texas oil and gas, Ohio power, Georgia minerals

According to Reuters, the first set of investments targets three sites: oil and gas infrastructure in Texas, power-sector projects in Ohio, and critical minerals in Georgia, including an oil export facility (https://www.reuters.com/business/energy/trump-announces-energy-critical-mineral-projects-texas-ohio-georgia-2026-02-17/). These locations suggest a focus on export capacity, grid and generation upgrades, and upstream-to-processing minerals capabilities.

Additional industry context indicates that Japanese utilities and trading houses have been stepping up acquisitions in U.S. LNG and shale assets since mid-2025, motivated by supply control and anticipated power demand growth; analysts also note risks from heavier dependence on U.S. LNG, according to CSIS (https://www.csis.org/analysis/japanese-energy-companies-step-us-investments). These trends help explain why early funds appear concentrated in hydrocarbons, grid-adjacent power, and mineral processing rather than higher-risk greenfield ventures.

How projects are chosen: joint METI–U.S. Commerce framework

Japan’s Ministry of Economy, Trade and Industry has outlined a joint selection framework with the U.S. Department of Commerce that uses equity, loans, and guarantees, with Japanese institutions retaining decision-making responsibilities and not simply following U.S. direction, according to METI (https://www.meti.go.jp/english/speeches/press_conferences/2025/1024001.html). This governance structure is intended to balance speed with due diligence, aligning projects to both countries’ economic security objectives while applying commercial screens.

To address concerns about political turnover, Japanese leadership has emphasized continuity in the agreement’s commitments before moving into project execution. “I believe that even if the prime minister changes, promises made between governments should not be altered,” said Prime Minister Sanae Takaichi, underscoring that the pledges are government-level in nature (https://www.yahoo.com/news/articles/japans-pm-says-no-plan-104251000.html).

Some Japanese economists and business voices have warned about asymmetry risks and potential exposure to U.S. protectionist pressure, urging careful risk assessment and measured scaling, as reported by English-language coverage of domestic commentary (https://english.news.cn/20251016/2919453beec74aab9615e2bd504a26c2/c.html). These critiques focus on profit-sharing dynamics and the possibility that U.S.-defined priorities could dominate the pipeline over time.

From the U.S. side, officials have framed the early pipeline around lower-risk, security-aligned sectors such as power infrastructure and pipelines, according to remarks highlighted by ROIC.ai (https://www.roic.ai/news/lutnick-japans-550b-us-investment-to-target-power-and-pipelines-10-27-2025). Taken together with METI’s joint-governance stance, this suggests a portfolio emphasizing energy reliability, export capacity, and critical mineral resilience rather than speculative projects.